Tax Foundation Launches CompeteUSA Campaign to Highlight Impact of High Business Taxes on U.S. Jobs and Wages
August 19, 2008
When people hear the phrase "corporate taxes," they tend to tune out if they don't own a business, assuming that corporate taxes don't affect them. However, all Americans should be concerned about the impact of corporate taxes, not only on business owners but also on prices, shareholders, international competitiveness, and workers' wages.
Today the Tax Foundation launched its CompeteUSA campaign to raise the public's awareness of America's high business tax rates and how those taxes have a "real-wallet" impact on our competitiveness, wages, and living standards.
As part of this look at the "real-wallet" impact of business taxes, the CompeteUSA campaign will also talk about how the American worker shoulders a disproportionate amount of the corporate tax, and the fact that the poorest 20 percent of households pay more in corporate income taxes each year than they pay in individual income taxes. In fact, corporate taxes were 6.3 percent of low-income households' tax bills last year compared to just 4 percent for individual income taxes.
The U.S.'s high corporate tax rates were also the focus of an editorial in the Wall Street Journal last Friday entitled "America the Uncompetitive," which pointed out that "every month that goes by without tax reform, America is a relatively less attractive place to do business."
Tax Foundation President Scott Hodge noted at the CompeteUSA kickoff:
20 years ago, the U.S. led the world in cutting the corporate tax rate to make our economy more conducive to job creation. Since then, almost every other industrialized country has cut its corporate tax while the United States has stood still, and as a result, the U.S. corporate tax rate is now 50% higher than the OECD average.
The CompeteUSA webpage contains data, studies, blog posts, commentaries, podcasts, offers for free publications, a video, and even a corporate tax IQ quiz.